What changed in this filing

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Item 1. Financial Statements

2026-08-13 compared with 2026-05-14 · 101 added, 62 removed, 475 unchanged (26% of the section changed)

27 unchanged sentences

Preferred stock, $ 0.01 par value:

1,000 shares authorized, no shares issued or outstanding at March 31, 2026 and December 31, 2025

1,000 shares authorized, no shares issued or outstanding at June 30, 2026 and December 31, 2025

Common stock, $ 0.001 par value:

30,000 shares authorized, 15,750 shares issued and outstanding at both March 31, 2026 and December 31, 2025

30,000 shares authorized, 15,750 shares issued and outstanding at both June 30, 2026 and December 31, 2025

Additional paid-in-capital

6 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands, except per share data)

4 unchanged sentences

Total operating expenses

(Loss) from operations

Income (loss) from operations

Other income (expense), net

(Loss) before income taxes

Income (loss) before income taxes

Income tax expense (benefit)

Net (loss) applicable to common stockholders

Net income (loss)

Net income (loss) applicable to common stockholders

Earnings (loss) per common share – basic and diluted

Weighted average common shares outstanding – basic and diluted

Weighted average common shares outstanding – basic

Weighted average common shares outstanding – diluted

See accompanying notes to these unaudited condensed consolidated financial statements.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

Net income (loss)

Other comprehensive income (loss), net of tax:

Foreign currency translation adjustments

Comprehensive (loss)

Comprehensive income (loss)

See accompanying notes to these unaudited condensed consolidated financial statements.

4 unchanged sentences

Stockholders’

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Income (Loss)

(in thousands)

Balance at March 31, 2026

Stock-based compensation expense

Foreign currency translation adjustment

Balance at June 30, 2026

Preferred Stock

Comprehensive

Stockholders’

Six Months Ended June 30, 2026

Income (Loss)

(in thousands)

Balance at December 31, 2025

1 unchanged sentence

Foreign currency translation adjustment

Balance at June 30, 2026

Preferred Stock

Comprehensive

Stockholders’

Three Months Ended June 30, 2025

Income (Loss)

(in thousands)

Balance at March 31, 2025

Stock-based compensation expense

Preferred stock dividends

Foreign currency translation adjustment

Balance at June 30, 2025

Preferred Stock

1 unchanged sentence

Stockholders’

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Income (Loss)

4 unchanged sentences

Foreign currency translation adjustment

Balance at March 31, 2025

Balance at June 30, 2025

See accompanying notes to these unaudited condensed consolidated financial statements.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31,

Six Months Ended June 30,

(in thousands)

25 unchanged sentences

Interest paid

Supplemental disclosure of non-cash investing and financing activities:

Lease liabilities arising from obtaining right-of-use assets

See accompanying notes to these unaudited condensed consolidated financial statements.

58 unchanged sentences

The following table presents revenue recognized at a point in time and revenue recognized over time:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

11 unchanged sentences

All of the costs related to advertising and marketing our products are expensed as incurred or at the time the marketing takes place.

Advertising and marketing costs incurred in the three months ended March 31, 2026 and 2025 were $ 35,000 and $ 43,000 , respectively.

Advertising and marketing costs incurred in the three months ended June 30, 2026 and 2025 were $ 10,000 and $ 3,000 , respectively.

Advertising and marketing costs incurred in the six months ended June 30, 2026 and 2025 were $ 45,000 and $ 46,000 , respectively.

Stock-Based Compensation

72 unchanged sentences

We reviewed all recently issued accounting pronouncements and, other than as described below, concluded they are not applicable or not expected to be material to our financial statements.

In December 2023, the FASB issued ASU No.

2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures (“ASU 2023-09”), which will require the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold.

ASU 2023-09 will also require the Company to disaggregate its income taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions.

The Company will adopt ASU 2023-09 in its fourth quarter of 2026 using a prospective transition method.

In November 2024, the FASB issued ASU No.

3 unchanged sentences

Clarifying the Effective Date , which clarified the effective date of ASU 2024-03.

ASU 2024-03 will require the Company to disclose the amounts of purchases of inventory, employee compensation, depreciation and intangible asset amortization,

as applicable, included in certain expense captions in the Consolidated Statements of Operations, as well as qualitatively describe remaining amounts included in those captions.

ASU 2024-03 will require the Company to disclose the amounts of purchases of inventory, employee compensation, depreciation and intangible asset amortization, as applicable, included in certain expense captions in the Consolidated Statements of Operations, as well as qualitatively describe remaining amounts included in those captions.

ASU 2024-03 will also require the Company to disclose both the amount and the Company’s definition of selling expenses.

1 unchanged sentence

Subsequent Events

We have evaluated subsequent events through May 14, 2026, being the date these condensed consolidated financial statements were issued.

We have evaluated subsequent events through August 13, 2026, being the date these condensed consolidated financial statements were issued.

Note 2 – Details of Certain Financial Statement Components

22 unchanged sentences

Total property, plant and equipment, net

Depreciation expense totaled $ 47,000 for each of the three months ended March 31, 2026 and 2025.

March 31, 2026

Depreciation expense totaled $ 45,000 and $ 48,000 for the three months ended June 30, 2026 and 2025, respectively.

Depreciation expense totaled $ 92,000 and $ 95,000 for the six months ended June 30, 2026 and 2025, respectively.

June 30, 2026

December 31, 2025

6 unchanged sentences

Total intangible assets, net

Amortization expense totaled $ 172,000 for each of the three months ended March 31, 2026 and 2025.

Amortization expense totaled $ 141,000 and $ 184,000 for the three months ended June 30, 2026 and 2025, respectively.

Amortization expense totaled $ 313,000 and $ 356,000 for the six months ended June 30, 2026 and 2025, respectively.

Future remaining amortization expense is as follows:

2 unchanged sentences

2026 (remainder of year)

The changes in the carrying amount of goodwill for the periods ended March 31, 2026 and 2025 are as follows:

The changes in the carrying amount of goodwill for the periods ended June 30, 2026 and 2025 are as follows:

(in thousands)

1 unchanged sentence

Adjustment to goodwill, foreign currency exchange rate changes

Balance as of March 31, 2026

Balance as of June 30, 2026

(in thousands)

2 unchanged sentences

Adjustment to goodwill, foreign currency exchange rate changes

Balance as of March 31, 2025

Balance as of June 30, 2025

Accrued liabilities consisted of the following:

15 unchanged sentences

Three Months Ended

Six Months Ended

(in thousands, except per share data)

Net income (loss)

Preferred stock dividends

Net (loss) applicable to common stockholders

Net income (loss) applicable to common stockholders

Weighted average common shares outstanding – basic

5 unchanged sentences

Shares subject to restricted stock units excluded from calculation because their effect would be anti-dilutive

For the three months ended March 31, 2025, 200,000 shares of Series A Convertible Preferred Stock convertible into 900,000 shares of common stock were outstanding but were not included in the computation of diluted earnings (loss) per share because the effect of their conversion would be anti-dilutive due to the net losses;

the 900,000 shares of common stock that were issued on conversion of the Series A Convertible Preferred Stock in October 2025 are included in the computation of basic and diluted shares outstanding for the three months ended March 31, 2026.

For the three months ended March 31, 2026 and 2025, 46,875 restricted stock units (relating to the same number of shares of common stock) were outstanding but were not included in the computation of diluted earnings (loss) per share for those periods because their effect would be anti-dilutive due to the net loss applicable to common stockholders.

For the three and six months ended June 30, 2025, 200,000 shares of Series A Convertible Preferred Stock convertible into 900,000 shares of common stock were outstanding but were not included in the computation of diluted earnings (loss) per common share because the effect of their conversion would be anti-dilutive due to the net losses;

the 900,000 shares of common stock that were issued on conversion of the Series A Convertible Preferred Stock in October 2025 are included in the basic and diluted shares outstanding for the three and six months ended June 30, 2026.

For the three months ended June 30, 2025, and for the six months ended June 30, 2026 and 2025, 46,875 restricted stock units (relating to the same number of shares of common stock) were outstanding but were not included in the computation of diluted earnings (loss) per common share for those periods because their effect would be anti-dilutive due to the net loss applicable to common stockholders.

Note 5 – Stock - Based Compensation and Restricted Stock Units

3 unchanged sentences

The related compensation expense is recognized ratably over the vesting period.

During each of the three-month periods ended March 31, 2026 and 2025, the Company recorded $ 7,000 of stock-based compensation expense for these restricted stock units.

A summary of the status of the Company’s nonvested restricted stock units as of and for the three-month period ended March 31, 2026, is as follows:

During each of the three-month periods ended June 30, 2026 and 2025, the Company recorded $ 7,000 of stock-based compensation expense for these restricted stock units.

During each of the six-month periods ended June 30, 2026 and 2025, the Company recorded $ 14,000 of stock-based compensation expense for these restricted stock units.

A summary of the status of the Company’s nonvested restricted stock units as of and for the six-month period ended June 30, 2026, is as follows:

Nonvested Restricted Stock Units

Nonvested at January 1, 2026

Nonvested at March 31, 2026

As of March 31, 2026, there was approximately $ 81,000 of total unrecognized compensation cost related to nonvested restricted stock units.

Nonvested at June 30, 2026

As of June 30, 2026, there was approximately $ 73,000 of total unrecognized compensation cost related to nonvested restricted stock units.

That cost is expected to be recognized over a weighted-average period of 2.5 years.

2 unchanged sentences

Revenues from customers equal to or greater than 10% of total revenues are as follows:

Three Months Ended March 31,

* Less than 10% of total revenues

Three Months Ended June 30,

Six Months Ended June 30,

Revenues by geographic area are as follows:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

6 unchanged sentences

Accounts receivable balances are monitored on an ongoing basis, and accounts deemed to have credit risk are fully reserved.

At March 31, 2026, one customer accounted for 23 % of total accounts receivable.

At December 31, 2025, the same customer accounted for 23 % of total accounts receivable.

At June 30, 2026, two customers accounted for 24 % and 18 %, respectively, of total accounts receivable.

At December 31, 2025, one customer accounted for 23 % of total accounts receivable.

Our long-lived assets were geographically located as follows:

13 unchanged sentences

Transactions with Qualstar and its subsidiaries are as follows:

Three months ended March 31,

Three Months Ended June 30,

(in thousands)

Balance at April 1

Billed (or accrued) to Qualstar by Interlink

Paid by Qualstar to Interlink

Billed (or accrued) to Interlink by Qualstar

Paid by Interlink to Qualstar

Balance at June 30

Six Months Ended June 30,

(in thousands)

Balance at January 1

3 unchanged sentences

Paid by Interlink to Qualstar

Balance at March 31,

Balance at June 30

BKF Capital Group, Inc.

7 unchanged sentences

Interlink and BKF Capital also agree to reimburse, or be reimbursed by, one another for expenses paid by one company on behalf of the other.

Transactions with BKF Capital and its subsidiaries were not material during the periods ended March 31, 2026 and 2025.

Transactions with BKF Capital and its subsidiaries were not material during the periods ended June 30, 2026 and 2025.

Ridgefield Acquisition Corp (OTCMKTS:RDGA)

3 unchanged sentences

Interlink and Ridgefield agree to reimburse, or be reimbursed by, one another for expenses paid by one company on behalf of the other.

Transactions with Ridgefield were not material during the periods ended March 31, 2026 and 2025.

Transactions with Ridgefield were not material during the periods ended June 30, 2026 and 2025.

Note 8 – Income Taxes

Income taxes represented 13.3 % of pre-tax loss for the three months ended March 31, 2026, compared to 4.6 % of pre-tax loss for the same period in the prior year.

Income taxes represented 7.4 % and 9.9 % of pre-tax income/loss for the three months ended June 30, 2026 and 2025, respectively, and represented 43.4 % and 6.4 % of pre-tax income/loss for the six months ended June 30, 2026 and 2025, respectively.

Our income taxes are impacted by the mix of domestic and foreign pre-tax earnings and losses, permanent differences between book income/loss and taxable income/loss, and our ability to utilize net operating loss carryforwards (“NOLs”).

1 unchanged sentence

statutory tax rate of 21 % from quarter to quarter.

The effective tax rates for the three-month periods ended March 31, 2026 and 2025 were impacted by the amount of our foreign pre-tax income/loss and the tax expense/benefit thereon while not realizing a benefit on our domestic pre-tax loss due to the valuation allowances thereon.

The effective tax rates for the periods ended June 30, 2026 and 2025 were impacted by the amount of our foreign pre-tax income/loss and the tax expense/benefit thereon while not realizing a benefit on our domestic pre-tax loss due to the valuation allowances thereon.

Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets.

We analyzed our need to record a valuation allowance against our otherwise recognizable net deferred tax assets in the federal, state and foreign jurisdictions, and we determined that a valuation allowance on federal, state, and certain foreign deferred tax assets was necessary at both March 31, 2026 and December 31, 2025.

The amount of deferred tax assets considered realizable could be adjusted in future periods if estimates of future taxable income during the carryforward period are reduced or increased, or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as our projections for future profitability.

12 unchanged sentences

The rate implicit in each lease is not readily determinable, and we therefore use our incremental borrowing rate to determine the present value of the lease payments.

No new right-of-use (“ROU”) assets were capitalized during the three months ended March 31, 2026 or 2025.

The weighted average incremental borrowing rate used to determine the initial value of right-of-use (“ROU”) assets and lease liabilities capitalized during the each of the six months ended June 30, 2026 and 2025 was 9.5 %.

ROU assets for operating leases are periodically assessed for impairment.

14 unchanged sentences

The sublease term began in March 2025 and also ends in October 2027.

We lease a 14,476 square-foot manufacturing facility and administrative office in Shenzhen, China.

In May 2024, we renewed this lease for the period June 2024 through May 2026 for approximately $ 8,000 per month.

In May 2024, we also leased an additional 7,287 square-foot manufacturing facility in Shenzhen, China for the same two - year period for approximately $ 3,000 per month.

In June 2025, we modified the lease on this additional facility, reducing the footprint to 1,292 square - feet, reducing the monthly rent to approximately $ 1,000 , and extending the term to June 2027.

We lease a 14,476 square-foot manufacturing facility and administrative office in Shenzhen, China for approximately $ 8,000 per month under a lease agreement that ends in May 2028.

We also lease an additional 1,292 square-foot production facility in Shenzhen, China for approximately $ 1,000 per month under an agreement that ends in June 2027.

We lease a 9,800 square-foot manufacturing facility and administrative offices in Irvine, Scotland for approximately $ 5,000 per month.

This lease term ends February 2028.

For the period from January 2025 to September 2025, we used a 10,786 square-foot manufacturing facility and administrative offices in Barnsley, England subject to a temporary premise license agreement with payments of approximately $ 11,000 per month.

We are in the process of relocating this facility.

This lease term ends in February 2028.

In June 2026, we entered into a lease agreement for a production facility in Sheffield, England for approximately $ 5,000 per month.

This lease term ends in June 2031 with an option to terminate the lease in June 2029.

Prior to the Sheffield location, we previously used a production facility in Barnsley, England subject to a temporary premise license agreement with payments of approximately $ 11,000 per month.

We lease a 3,000 square-foot logistics and distribution facility in Hong Kong for approximately $ 2,000 per month.

3 unchanged sentences

We previously leased a 275 square - foot engineering and administrative office in Singapore for approximately $ 1,000 per month through June 2025.

As of March 31, 2026, we had ROU assets of $ 669,000 and current and long-term lease liabilities of $ 304,000 and $ 419,000 , respectively.

As of June 30, 2026, we had ROU assets of $ 977,000 and current and long-term lease liabilities of $ 409,000 and $ 619,000 , respectively.

As of December 31, 2025, we had ROU assets of $ 760,000 and current and long-term lease liabilities of $ 324,000 and $ 493,000 , respectively.

Future imputed interest as of March 31, 2026 totaled $ 95,000 (weighted average discount rate of 9.1 %);

Future imputed interest as of June 30, 2026 totaled $ 152,000 (weighted average discount rate of 9.1 %);

and future imputed interest as of December 31, 2025 totaled $ 113,000 (weighted average discount rate of 9.1 %).

The weighted average remaining lease term of the Company’s leases as of March 31, 2026 is 1.3 years;

The weighted average remaining lease term of the Company’s leases as of June 30, 2026 is 2.2 years;

and as of December 31, 2025 was 1.5 years.

6 unchanged sentences

Present value of lease liabilities

During the three months ended March 31, 2026, we incurred approximately $ 107,000 in operating lease costs, of which $ 61,000 is included in cost of revenue and $ 46,000 is included in operating expenses in our condensed consolidated statements of operations.

During the three months ended March 31, 2025, we incurred approximately $ 133,000 in operating lease costs, of which $ 73,000 are included in cost of revenue and $ 60,000 are included in operating expenses in our condensed consolidated statements of operations.

During the three months ended June 30, 2026, we incurred approximately $ 116,000 in operating lease costs, of which $ 67,000 is included in cost of revenue and $ 49,000 is included in operating expenses in our condensed consolidated statements of operations.

During the three months ended June 30, 2025, we incurred approximately $ 136,000 in operating lease costs, of which $ 76,000 are included in cost of revenue and $ 60,000 are included in operating expenses in our condensed consolidated statements of operations.

During the six months ended June 30, 2026, we incurred approximately $ 224,000 in operating lease costs, of which $ 124,000 is included in cost of revenue and $ 100,000 is included in operating expenses in our condensed consolidated statements of operations.

During the six months ended June 30, 2025, we incurred approximately $ 269,000 in operating lease costs, of which $ 150,000 are included in cost of revenue and $ 119,000 are included in operating expenses in our condensed consolidated statements of operations.

We are not currently party to any legal proceedings.

41 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements